IRS
The Internal Revenue Service - US government tax collection agency.
The Internal Revenue Service is the federal agency responsible for collecting taxes, processing returns, enforcing tax law, and issuing refunds. The IRS publishes guidance, forms, and publications to help taxpayers comply. It also audits returns, assesses penalties, and administers programs like installment agreements for taxpayers who cannot pay in full.
Example
A small business receives a notice from the IRS requesting documentation for a Schedule C deduction, beginning a correspondence audit process.
Why It Matters for Your Business
Understanding how the IRS operates—from filing requirements to audit triggers—helps you stay compliant and avoid costly penalties or enforcement actions.
Related Terms
More Taxes Terms
Adjusted Gross Income
Gross income minus specific deductions like retirement contributions.
Tax Audit
An examination of tax returns by the IRS to verify accuracy.
Capital Gains
Profit from selling an asset for more than its purchase price.
Capital Loss
Loss from selling an asset for less than its purchase price.
Tax Deduction
An expense that reduces taxable income.
Related Financial Guides & Resources
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